Customer Centricity Combining Marketing, Brand & Workforce To Supercharge Your Customer Experience

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1 Customer Centricity Combining Marketing, Brand & Workforce To Supercharge Your Customer Experience Chris Brown & Scott Hamilton October 9 & 10, 2013 Webster University and Employers Group ENP Executive Labs

2 Executive Next Practices Institute T

3 N t Next Practices defined Ideas, processes, concepts and solutions that move us beyond the status quo. Not how are others doing it best but rather, where do we go from here that represents a true fundamental shift in value

4 Chris Brown, ENP-NextWORKS Customer Practice Leader & CEO MarketCulture

5 Our New Book To be released January

6 Company Experience & Outcomes Increased Margins & Customer Responsiveness Increased Share & Profit Moved from flat to more than 10% profit growth for the past 3 years Improved Collaboration & Opening of New Markets Program designed to improve internal collaboration around customers Improved customer satisfaction scores by 23% 6

7 Alignment to the Customer Customer Centricity 7 MRI - Audit Best Practices Next Steps

8 Importance and Measurement of Customer Centricity 1 2 CUSTOMER CENTRICITY What is it?- What is driving it? Why is it important?- Who has it? MEASURING CUSTOMER CENTRICITY Research Reveals 7 Disciplines MPANY EXAMPLES 8 30min 30min

9 Major Trends Driving the Need for Customer Centricity Globalization increased competition Power shift to consumers Expectations increasing - Apple Social Media facebook/twitter Product Commoditization and Digitization Rapid technological change and innovation Mobile app disruption Demand for transparency wiki leaks Need for higher employee engagement CUSTOMER CENTRICITY 9 MRI - Audit Best Practices Next Steps Q&A

10 These trends led us to explore Customer Centricity Customer Centricity Defined it is about culture CUSTOMER CENTRICITY 10 The capacity of an organization and its culture to understand, predict and respond to customer, market and competitor dynamics, demands and disruptions. Customer centricity must transcend individual departments and functions and be an integral part of the way all employees behave and perform. MRI - Audit Best Practices Next Steps Q&A

11 The OPPORTUNITY 91% of companies claim to be customer focused. Only 10% of customers agree -Forrester Research 2012 CUSTOMER CENTRICITY 11 MRI - Audit Best Practices Next Steps Q&A

12 Two parts to Successful Customer Centricity Programs Team Culture/ Behaviors Alignment & Buy in Customer Experience Management, Tools + Processes True Customer Centricity

13 Customer Centric Behaviours Drive Business Growth and Profit The Corporate Culture Customer Centric Behaviours The Creation The Outcome Customer Experience (Evolving) Customer Satisfaction + Advocacy (Changing) The Results Sales Revenue Growth Profit Growth Profitability New Product Success CUSTOMER CENTRICITY 13 MRI - Audit Best Practices Next Steps Q&A

14 Why invest in Customer Experience? It takes 12 positive experiences to make up for an unresolved negative experience Understanding Customers, Ruby Newell-Legner

15 The 6 laws of customer experience 1. Every interaction creates a PERSONAL reaction 2. We are SELF-CENTERED 3. Customer understanding creates ALIGNMENT 4. Only ENGAGED people create engaged CUSTOMERS 5. We do what is MEASURED, REWARDED + CELEBRATED 6. AUTHENTICITY can t be faked Source: Adapted from The Temkin Group

16 Customer Experience Exercise In pairs tell each other a story of your personal experience as a customer. Time 10 minutes. Either a good experience or a bad experience Note what sticks out in your mind as the main factors in creating the good or bad experience? List the one or two factors on the following chart. Any lessons for your organization?

17 Customer Centricity And Business Performance Market-driven firms are, on average, 31% more profitable than self-centered firms The Market Driven Organization: Understanding, Attracting, and Keeping Valuable Customers George S. Day, Wharton School, University of Pennsylvania CUSTOMER CENTRICITY 17 MRI - Audit Best Practices Next Steps Q&A

18 What do Top Firms Have in Common? They exhibit a high level of customer-centric behaviour and decision-making CUSTOMER CENTRICITY 18 MRI - Audit Best Practices Next Steps Q&A

19 #1 Imperative - Concept of Value #1 Imperative in Customer Centricity Superior Customer Value CUSTOMER CENTRICITY 19 MRI - Audit Best Practices Next Steps Q&A

20 Importance and Measurement of Customer Centricity 1 2 CUSTOMER CENTRICITY 10min What is it?- What is driving it? Why is it important?- Who has it? MEASURING CUSTOMER CENTRICITY 15min Research Reveals 7 Disciplines 5min ROADMAP TO CUSTOMER CENTRICITY 5min MPANY EXAMPLES 20

21 How do you measure Customer Centricity?... 7 Behaviours in Two Categories 5 2 CUSTOMER CENTRICITY 21 External Drivers Internal Enablers MRI - Audit Best Practices Next Steps Q&A

22 The External Drivers Factors Descriptions Customer Insight The extent to which employees monitor, understand, and act on current customer needs and satisfaction. Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities. Competitor Insight The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses Competitor Foresight The extent to which employees monitor, understand, and respond to new market entrants and potential competitors. Peripheral Vision The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical) CUSTOMER CENTRICITY 22 MRI - Audit Best Practices Next Steps Q&A

23 The Internal Enablers Factors Descriptions Cross-Functional Collaboration The extent to which employees interact, share information, work with, and assist colleagues from other work groups Strategic Alignment The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company. CUSTOMER CENTRICITY 23 MRI - Audit Best Practices Next Steps Q&A

24 The OPPORTUNITY 2/3 of corporate strategy is never executed Of 2,000 large firms studied, 90% had detailed strategic plans, but 7 out of 8 failed to achieve profitable growth - AICD (Bain Consulting) CUSTOMER CENTRICITY 24 MRI - Audit Best Practices Next Steps Q&A

25 Links to Business Performance Outcomes Factors Customer Insight Customer Satisfaction Innovation New Product Success Customer Foresight Profitability Sales Revenue Growth Competitor Insight Competitor Foresight Peripheral Vision Strategic Alignment Cross-Functional Collaboration CUSTOMER CENTRICITY 25 Profit Growth MRI - Audit Best Practices Next Steps Q&A

26 The Market Responsiveness Index (MRI) A simple, web-based benchmarking system to assess your cultural capacity to win (a 35 item survey) Measures your organization s Customer Centricity and capacity to execute across the seven critical success factors Empowers managers to transform organizations and drive measurable financial performance improvement Proven to be highly effective in predicting of customer satisfaction, innovation, new product success and profitable growth Tested and validated with 100+ companies across many industries Customer Centricity 26 MRI - Audit Best Practices Next Steps Q&A

27 Performance Examples from Real Companies Circumplex graphics below, which are part of every MRI report, are samples from actual companies. Their relative scores closely correlate with weak and strong business performance metrics. Strong Performer 27 Weak Performer

28 Real Company Example B2B Products 2009 vs Verbatim Comments from Employees Customer Centricity 28 MRI - Audit Best Practices Next Steps Q&A

29 Now rate your own business Factors Descriptions Customer Insight The extent to which employees monitor, understand, and act on current customer needs and satisfaction. Customer Foresight The extent to which employees monitor, understand, and act on potential customer needs and opportunities. Competitor Insight The extent to which employees monitor, understand, and respond to current competitor strengths and weaknesses Competitor Foresight The extent to which employees monitor, understand, and respond to new market entrants and potential competitors. Peripheral Vision The extent to which employees monitor understand and respond to trends in the larger environment (Political, Economic, Social, and Technical) Cross-Functional Collaboration The extent to which employees interact, share information, work with, and assist colleagues from other work groups Strategic Alignment The extent to which employees understand, and enact the vision, mission, objectives and strategic direction of the company. Your Rating (1-10)

30 GROUP EXERCISE Step 1: Highlight which factor you think your business is strongest and weakest in (Refer back to your previous ratings) Step 2: Discuss your findings with your neighbor and answer these questions: 1. What are the implications? Refer to the links to business performance chart 2. What could you do to enhance the results? 3. How might this process be received in your own organization?

31 The Value of Experience Measurable employee commitment, productivity and innovation rise in direct proportion to how they experience a task

32 Engage people must experience what it is you want to them to support. And.. Clearly define their role!

33 Measure What Matters to Customers Line-of-sight metricsevery process, every level

34 Implementation- Must be Experiential Customer Centricity 34 MRI - Audit Best Practices Next Steps Q&A

35 Next Steps 21st Century Competition is About Customer Centricity Step 1: Phone Assessment and do a pilot MRI to measure your team s Customer Centricity Step 2: Discuss the results, identify new initiatives to improve organizational Customer Centricity Contact info@enpinstitute.com Chris Brown Scott Hamilton